Housing and Community Development Act of 1987

Housing and Community Development Act of 1987 - Title I: Housing Assistance - Subtitle A: Programs Under United States Housing Act of 1937 - Part 1: General Provisions - Amends the United States Housing Act of 1937 to increase FY 1988 and 1989 budget authority for lower income housing programs, including public housing, Indian housing, elderly and handicapped housing, regular housing, and comprehensive improvement assistance.

Provides for public housing phased-in rent increases in cases of tenant employment.

Part 2: Public Housing - Amends the United States Housing Act of 1937 relating to the administration of public housing management.

Authorizes grants for public housing development costs.

Directs the Secretary of Housing and Urban Development (Secretary) to provide payments for operating lower income housing projects through a performance funding system that is based on a certain system and that establishes standards for operating costs and income projections. Authorizes FY 1988 and 1989 appropriations.

Authorizes grants for comprehensive improvement assistance.

Revises the conditions of approval for project demolition applications.

Authorizes public housing comprehensive grants. Requires the Secretary to include such operations in his annual report.

Provides for a pilot program of public housing resident management, including establishment of resident management corporations (RMCs).

Provides families residing in public housing projects with the opportunity to purchase dwelling units through an RMC.

Establishes a seven-year public housing comprehensive transition demonstration program in Charlotte, North Carolina, to demonstrate the effectiveness of providing comprehensive services to public housing tenants to ensure their transition to private housing. Requires interim and final congressional reports.

Part 3: Section 8 Assistance and Other Programs - Amends the United States Housing Act of 1937 to require annual October 1 adjustments for section 8 fair market rentals. Repeals the requirement that section 8 rent increases be based only on operating costs.

Authorizes annual housing voucher adjustments.

Provides for the portability of section 8 certificates and vouchers.

Sets forth section 8 administrative fee provisions. Requires a General Accounting Office report to the Congress regarding such fee structure. Gives section 8 priority to economically depressed areas.

Prohibits landlords with section 8-assisted projects from not renting to a section 8 certificate or voucher holder.

Authorizes FY 1988 and 1989 appropriations for the rental rehabilitation grant program.

Terminates the rental development (section 17) grant program.

Subtitle B: Multifamily Housing Management and Preservation - Amends the Housing and Community Development Amendments of 1978 regarding the management and preservation of HUD-owned multifamily housing projects.

Provides for tenant participation in multifamily housing projects.

Authorizes FY 1988 and 1989 appropriations for capital improvements in the troubled multifamily housing project program. Establishes the Capital Improvements Assistance Fund in the Treasury for such purposes.

Subtitle D (sic): Other Housing Assistance Programs - Amends the Housing Act of 1959 to authorize FY 1988 borrowing authority and FY 1988 and 1989 loan authority for elderly and handicapped housing.

Provides for a demonstration (three year maximum) of prototype handicapped designs. Terminates section 8 assistance in handicapped projects (primarily nonelderly) where contract funds are appropriated under such housing for the handicapped families program.

Amends the Congregate Housing Services Act of 1978 to authorize FY 1988 and 1989 appropriations for the congregate services program.

Amends the Housing and Community Development Act of 1980 to exempt from HUD regulations limiting alien eligibility for public housing: (1) alien families with an American member; (2) current housing residents; and (3) affirmed citizens over age 62. (Retains the student-alien restriction.)

Authorizes the Secretary to require HUD program participants or applicants to disclose their social security or employer identification numbers.

Directs the Secretary to establish energy conservation standards for use in assisted housing development and rehabilitation projects.

Amends the Housing and Urban-Rural Recovery Act of 1983 to authorize FY 1988 and 1989 appropriations for housing demonstration projects. Requires a program report to the Congress.

Amends the Housing and Urban Development Act of 1965 to give tenant preference to persons who are in substandard housing, pay more than 50 percent of their income as rent, or are involuntarily displaced.

Title II: Rural Housing - Amends the Housing Act of 1949 to authorize FY 1988 and 1989 appropriations for: (1) subsidized homeownership loans; (2) farmworker rental housing loans; (3) low income and elderly subsidized rental housing loans; (4) site loans; (5) home repair loans; (6) construction defects payments; (7) repair grants; (8) farmworker rental housing grants; (9) mutual and self-help grants; (10) rental assistance payments; and (11) housing preservation grants.

Extends authority through FY 1989 for rental assistance payment contracts and rural voucher contracts.

Provides that maximum income levels for rural housing programs in the Virgin Islands shall be the same as those for Guam, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

Amends the Housing Act of 1949 to provide for rural housing escrow accounts.

Extends the existing "rural area" classification through September 30, 1989.

Requires a study of mortgage credit in rural areas.

Revises the definition of very-low income families for purposes of rural housing assistance eligibility.

Requires local governmental consultation under the programs for insured loans and financial assistance for domestic farm labor housing.

Prohibits reduction, cancellation, or refusal to renew rural housing assistance due to an increase in borrower income if the borrower will be unable to reasonably afford the resulting higher payments.

Obligates a specified percentage of FY 1988 home ownership loan guarantees for moderate income families.

Establishes a rural rental housing displacement prevention program.

Title III: Mortgage Insurance and Secondary Mortgage Market Programs - Subtitle A: FHA Mortgage Insurance Programs - Amends the National Housing Act to extend authority permanently for: (1) title I financial institution insurance for housing renovation and modernization; (2) general mortgage insurance; (3) low and moderate income and displaced families mortgage insurance; (4) mortgage co-insurance, including rental rehabilitation and development projects; (5) graduate payment and indexed mortgage insurance; and (6) mortgage insurance for land development.

Terminates new mortgage insurance authority for servicemen after September 30, 1987.

Provides a specified FY 1988 and 1989 amount for Federal Housing Administration (FHA) mortgage insurance commitments. Authorizes the Secretary to fix premium charges for FHA mortgages or loan insurance, but not more than certain percentages of principal calculated according to specified formulae.

Permits the Secretary to insure a mortgage secured by a one- to four-family dwelling, or approve of a substitute mortgagor who assumes any mortgage, only if the mortgagor is to occupy the dwelling as a principal or secondary residence. Excludes from eligibility certain public and private nonprofit investors.

Repeals the vacation and seasonal home mortgage insurance program.

Specifies certain actions which the Secretary must take to reduce losses under the single family mortgage insurance program.

Requires State approval of, or an independent certification of need for, hospital mortgage insurance.

Transfers mortgage insurance programs for Hawaiian homelands and Indian lands from the Mutual Mortgage Insurance Fund to the General Insurance Fund of the Treasury. Permits Native Hawaiians to transfer FHA-financed property to their children or surviving spouses who do not meet the legal definition of native Hawaiians.

Increases from ten to 20 percent of the aggregate number of insured mortgages and loans for the preceding fiscal year the ceiling on the aggregate number of such insured mortgages and loans for any particular fiscal year.

Raises the fine for equity skimming from $5,000 to $250,000, and the possible prison sentence from a maximum of three years to a maximum of five years. Subjects skimming on cooperatives and condominiums to such penalties. Revises the definition of one kind of equity skimming practice to mean failing to make payments under the mortgage or deed of trust as the payments become due, regardless of whether the purchaser is obligated on the loan.

Authorizes the Secretary to impose civil money penalties on a mortgagee for certain violations of requirements of such Act, up to a maximum of $1,000 per violation, or $1,000,000 for all violations by a particular mortgagee during a one-year period. Provides for judicial review of an agency determination to assess such penalties.

Authorizes the Secretary to conduct a demonstration program of insurance of home equity conversion mortgages of elderly homeowners through FY 1991. Limits the total number of such mortgages to 2500.

Repeals the provision requiring the publication of certain prototype housing costs.

Provides for a double damages remedy in U.S. district court to recover housing project assets or income.

Prohibits a mortgage or lender from setting minimum principal loan amounts (including refinancings).

Increases the maximum single family mortgage amount from 133 1/3 percent to 150 percent of the prevailing home sales price.

Amends the definition of veteran, for specified mortgage insurance purposes, to require that persons who enlisted in the armed forces after September 7, 1980, or who entered active duty after October 16, 1981, shall have their eligibility determined in accordance with specified Federal law.

Permits the use of approved individual residential water purification units if the existing water supply does not meet HUD standards.

Authorizes increased multifamily project mortgage limits in high-cost areas.

Authorizes operating loss loan insurance for certain projects with existing mortgages insured by the Secretary.

Subtitle B: Secondary Mortgage Market Programs - Prohibits (with specified exceptions) fees from being charged on: (1) Federal National Mortgage Association (FNMA) mortgages; or (2) Federal Home Loan Mortgage Corporation mortgages.

Extends Federal National Mortgage Association and Federal Home Loan Mortgage Corporation mortgage purchase authority permanently.

Amends the Federal National Mortgage Association Charter Act to set FY 1988 and 1989 limits on Government National Mortgage Association guarantees of mortgage-backed securities.

Title IV: Community Development and Miscellaneous Programs - Subtitle A: Community and Neighborhood Development and Preservation - Amends the Housing and Community Development Act of 1974 to authorize appropriations through FY 1990 for the community development block grant (CDBG) program, including a specified amount for the special discretionary fund.

Makes specified amounts available for existing grant programs to minority graduate and undergraduate students in the areas of community development and planning.

Authorizes FY 1988 appropriations for the urban development action grant program (UDAG).

Extends community development block grant entitlement authority for certain metropolitan city and urban county areas through September 30, 1989.

Permits CDBG funds to be used for Great Lakes flooding and erosion control.

Permits a CDBG grantee to use more than 15 percent of annual funds for public service activities (with specified maximum limits).

Allows any appropriate State agency or official to certify for the receipt of CDBG funds in nonentitlement areas. (Currently, only the Governor has such authority.)

Authorizes multiyear CDBG funding in nonentitlement areas.

Revises UDAG selection criteria to add certain job-creation and minority small business considerations. Specifies points to be awarded for each factor in consideration and the percentage of fund distribution to applicants meeting different criteria. Requires the Comptroller General to report every three years to the Congress an evaluation of such selection criteria and the eligibility standards to which they apply.

Prohibits the use of urban development action grants for business relocations.

Authorizes appropriations through FY 1989 for the urban homesteading program.

Amends the Neighborhood Reinvestment Corporation Act to authorize FY 1988 and 1989 appropriations for the Neighborhood Reinvestment Corporation. Requires a privatization study.

Authorizes the retention and use of closed-out urban land disposition proceeds for CDBG purposes by the following local governments and specified projects: (1) Hartford, Connecticut; (2) Lebanon, Pennsylvania; (3) Richmond, Virginia; and (4) Milwaukee, Wisconsin.

Amends the Housing and Community Development Act of 1974 to terminate the loan guarantee program.

Subtitle B: Flood Insurance Program - Amends the National Flood Insurance Act of 1968 to extend authority for national flood insurance, including emergency implementation and flood-risk zones, through September 30, 1989.

Authorizes FY 1988 and 1989 appropriations for flood insurance studies.

Establishes a six-month moratorium on certain flood insurance regulations relating to mobile homes.

Subtitle C: Miscellaneous Programs - Authorizes a fair housing initiatives program. Authorizes FY 1988 and 1989 appropriations. Sets forth program provisions.

Directs the Secretary of Housing and Urban Development and the Secretary of Agriculture to collect at least annually data on the racial and ethnic characteristics of persons eligible for or benefiting under each community development, housing assistance, and mortgage and loan insurance and guarantee program the Secretary administers.

Amends the Housing and Urban Development Act of 1970 to authorize FY 1988 and 1989 appropriations for housing research and development, including energy improvements and lower-cost building technologies.

Amends the Home Mortgage Disclosure Act of 1975 to make mortgage disclosure authority permanent.

Amends the Housing and Urban Development Act of 1968 to authorize FY 1988 and 1989 appropriations for housing counseling.

Amends the National Manufactured Housing Construction and Safety Standards Act of 1974 to require manufactured home construction and safety standards to include energy conservation standards.

Amends the Lead-Based Paint Poisoning Prevention Act to require mortgagees to provide purchasers of 1978 or prior constructed homes with lead-based paint information. Directs the National Institute of Building Sciences and HUD to develop such information.

Title V: Enterprise Zone Development - Authorizes the Secretary to designate up to 100 enterprise zones (to be identified by State and local authorities, or Indian reservation governing bodies) to provide economic revitalization, job creation, and community development.

Requires a specified number of rural designations.

Sets forth area and eligibility requirements.

Prohibits business relocation assistance.

Requires program reports to the Congress every four years.

Authorizes the waiver or modification of housing and community development rules in enterprise zones.

Provides for the coordination of community development block grant, urban development action grant, and other HUD programs in such zones.